Why Are Steel Companies Against Futures Contracts?

Those who know me are aware that I can't stand when suppliers try to use the courts or rhetoric to cover up for their own cost-structure shortcomings or their desire to fix prices above a market price. In the past, I've gotten on the case of suppliers that have attempted to artificially raise the market price for activated carbon and bedding products among other areas. Now, big steel is crying foul of the new steel futures markets. Over on Metal Miner, you can learn the real reason why one steel company CEO called steel futures "phony baloney" in a recent speech. The answer? They're afraid of losing pricing control and putting it in the hands of the market. Read what Lisa and Stuart have to say on the subject here.